There is something very weird with the PhotoStory 3 encoder profiles for DVD (both NTSC and PAL). While all the others will give a fine result (for instance on a PC screen in 1280x768 pixels format) these two produce a videofile in .WMV format with images that are so "fuzzy" that one wouldn't possibly dare to show it even to family or friends !!!

Changing one or more parameters with the Windows Media Profiles Editor doesn't help if you keep the same filename (using "save and close").
 
But if, without changing anything to the original profile, you "export" it and give it another filename (for instance newDVDprofile.prx), this new profile which is in fact identical -except for the filename- to the original one, will produce a nice videofile with images as sharp as the pictures that were used to create the slideshow !!!

So it seems that behind the stage the PhotoStory 3 rendering software does something special when using one of these two profiles: "smoothing" of all the pictures, similar to what is called "feathering" in Paint Shop Pro, but then on the whole surface. And this process is triggered only by the special content of these rather unusual filenames: {3E54A8AB- … }.prx or {913A60D4 -…}.prx

It is almost impossible to think that this might be a bug, so it was done on purpose. But then why isn't all this documented by Microsoft? In fact this "smoothing" could be a nice feature if the user would have some kind of key to control/attenuate the process. 

It would be very interesting for the many enthusiastic users of PhotoStory 3
all over the world if the Microsoft Software Design Team could give their comments on all this !!!